Friday, June 20, 2014

Derivatives, Sound Money and the Move to Tangible Assets

Chris Martenson, economic analyst at and author of The Crash Course and James Turk, Director of the GoldMoney Foundation talk about banking, derivatives, sound money and the move to tangible assets. James Turk mentions that today, commercial banks as well as central banks are leveraged at unsustainable levels. While both agree that it makes sense to get back to less risky traditional banking and a sound money system, Martenson raises the question of how it will be possible to bring the leverage down to prudent levels again and how to get rid of the huge amount of complex derivatives. That said, Martenson argues that the gold standard has been proven to be a working monetary system with automatic leveling functions. As a result of the coming structural changes to our monetary system, both men recommend owning tangible assets. They point out, that those who act first have a great advantage.